Jan 2 The Petro - Venezuela Reveals Plan for National Cryptocurrency

The fact that Venezuela has shown interest in releasing a national cryptocurrency has been well-known until now. However, it seems that the country has already made some steps on that direction. Venezuela has unveiled how this national cryptocurrency will work.

The government of Venezuela has released a decree detailing the way the national digital currency, the Petro, will work. The decree reveals how the authorities see mining, operation and trading working for this national cryptocurrency. One thing that has previously been revealed is that the Petro will be supported by 5 billion barrels of crude oil, which are valued at around $267 billion.

The Petro was first revealed by Venezuela's President in December

The president of Venezuela, Nicolas Maduro, first announced the release of the Petro back in December. At that time, it was also revealed that the national cryptocurrency will be backed by the 5 billion barrels of crude oil already mentioned. The president also said that "every single Petro will be backed by a barrel of oil."

It has also been revealed that there will be two institutions in charge with overseeing the creation and operation of this national cryptocurrency. These institutions are the Cryptocurrency Superintendency and the National Blockchian Observatory.

The decree revealed that besides oil, the new national cryptocurrency will also be backed by gold, diamond, coltan and gas. As imagined, the new cryptocurrency will be held in virtual wallets. The decree indicated that:

The holder of the Petro may change the market value of the crypto-asset for the equivalent in another cryptocurrency or in Bolivares at the market exchange rate published by the national crypto-asset exchange house…The holder of each Petro will own a virtual wallet, which will be his [own] responsibility.

The exact moment when the Petro will become available for purchases is not clear for the moment. Initially, the Minister of Communication and Information allegedly said that this will happen in the next few days.

However, the President of Venezuela reportedly said that the release will be made after the authorities will present in January all the conditions in which the national cryptocurrency will function.